Rental guarantee and guarantor: what each one covers

Anyone renting a home in Costa Rica often finds that the landlord asks for more than the deposit: a guarantor, a policy or both. This guide explains what each guarantee answers for, what a guarantor takes on by signing, what to check before accepting and how to put it all in writing. It is meant for tenants, for people asked to act as guarantors and for landlords who want a clear contract.

What is a rental guarantee and what does it answer for?

A rental guarantee is the backing handed to the landlord to cover whatever the tenant might end up owing. In Costa Rica, article 59 of the Ley General de Arrendamientos Urbanos y Suburbanos (Law 7527) provides that any guarantee attached to a lease, whatever its nature, answers for the rent and for every other obligation arising from the law or the contract, unless expressly agreed otherwise. The rule applies equally to a cash deposit, to a guarantor and to any other backing the parties agree on.

That rule can be read two ways. For the landlord, the guarantee is not limited to unpaid rent: it also answers for the other obligations that the law or the contract places on the tenant. For the tenant and the guarantor, the last phrase is what matters: what the guarantee covers can be limited, but only through an express agreement. If the contract says nothing, the guarantee answers for everything. That is why it pays to read the guarantee clause together with the rest of the contract, because a broad guarantee on a contract with many obligations exposes whoever gives it to more.

Before browsing homes for rent in Costa Rica, it is worth being clear about which guarantee you are willing to offer and who could back you. Many landlords choose among several applicants based on the guarantee each one presents, so arriving with that answer ready usually shortens the negotiation and avoids signing a clause in a hurry without understanding it.

Which guarantees are used besides the deposit?

The deposit is the most common guarantee in Costa Rica: a sum of money the tenant hands over at the start and the landlord keeps while the contract lasts. It is wise to keep a receipt showing the amount, the date and the payment method. The tenant's rights over that money, from the moment it is handed over until it is returned, are covered in detail in tenant rights in the management of rental deposits.

A guarantor is a person other than the tenant who undertakes to answer if the tenant does not comply. Landlords usually ask for one when they want backing on top of the deposit, for instance with a tenant who has no rental history. A policy or guarantee product is an option offered by some insurers and other entities: the tenant takes it out and the entity backs certain obligations before the landlord. Its coverage, exclusions and term vary from one product to another, so the prudent step is to read its conditions before presenting it as a guarantee.

Under article 59 of that law, all three answer for the same thing unless expressly agreed otherwise: the rent and the other obligations. What changes among them is who provides the backing, how it is collected and what it costs to obtain. A landlord may ask for one or combine them; the tenant, in turn, may propose whichever is most workable.

What does a guarantor take on and what should they check before signing?

Whoever signs as guarantor puts their own assets behind another person's obligations. Like any lease guarantee, the guarantee is subject to the rule in article 59 of Law 7527: it answers for the rent and for the other obligations under the law or the contract, unless the contract expressly limits it. In practice, if the tenant stops paying or defaults, the landlord may turn to the guarantor to collect. That is why landlords usually ask the guarantor to show a stable income or to own assets in their name.

Being a guarantor is a favour with financial consequences, and it is best treated as such. Before accepting, the prospective guarantor should know the whole contract and not just the page where they sign, because they answer for whatever that contract says. The points that raise the most questions, such as what happens to the guarantee if the contract is extended or what signing as a joint guarantor implies, deserve a consultation with a lawyer before signing.

1. 1
   Read the whole contract, not just the guarantee clause.
2. 2
   Confirm which obligations the guarantee covers and whether there is an express limit on amount or items.
3. 3
   Check the term of the contract and what it says about extensions.
4. 4
   Ask in what capacity you will sign and consult a lawyer about what it implies.
5. 5
   Get to know the tenant's situation: income, stability and payment history.
6. 6
   Keep a signed copy of the contract and of any annex.

What can you offer the landlord when you have no guarantor?

Not having a guarantor does not close the door to a lease in Costa Rica. The usual approach is to negotiate another form of backing: a policy or guarantee product, a larger deposit when the home is not social-interest housing, or a combination of both. Before offering more money, it is worth reading the next section, because in social-interest housing the law sets a ceiling that cannot be overridden by agreement.

Besides the guarantee, it helps to present documentary backing: salary or income statements, references from previous landlords and proof of timely utility payments. Some landlords also value having rent paid by automatic transfer on a fixed date. None of these documents replaces a guarantee, but they often tip the decision when the landlord is weighing several applicants.

The rent itself also matters. Since the deposit is usually calculated on the monthly rent, a home with lower rent normally comes with a guarantee that is easier to put together. If the one requested for a home is hard for you to cover, widening the search to cheap homes for rent in Costa Rica may open options with more manageable backing.

How much guarantee can be required in social-interest housing?

Here the law does set a limit. Under articles 89, 90 and 92 of that law, in social-interest housing, such as houses or flats whose value does not exceed the ceiling set by BANHVI, the tenant cannot be required to give a guarantee larger than one month's rent nor to pay more than one month in advance, and any contrary agreement is void. If a contract for a home of that kind asks for more, that part of the agreement is not valid.

The practical question is how to know whether a home falls into that category. It depends on its value against the ceiling set by BANHVI, and that figure does not always appear in the listing. The prudent step is to ask the landlord before negotiating the guarantee and, if in doubt, to confirm the ceiling with BANHVI or with a lawyer.

That limit rests on the nature of the law. Articles 2, 3 and 4 of Law 7527 provide that it governs every lease of real property, oral or written; that it is a public-order law and that the rights it gives tenants cannot be waived, so a clause that contradicts its mandatory rules is treated as unwritten. Signing a contract that asks for more than allowed does not make that demand valid.

How should the guarantee be put in writing and what happens at the end?

The law also applies to oral contracts, but a written contract avoids disputes about what was agreed. The guarantee should be described with the same care as the rent and the term. What a contract should include and which clauses are void is explained in our guide rental agreement in Costa Rica: what it must say, what is void. For the guarantee in particular, these are the steps we recommend.

1. 1
   State the type of guarantee and who gives it.
2. 2
   Record the deposit amount, the date and how it was handed over, and keep the receipt.
3. 3
   If there is a guarantor, identify them with full details and have them sign the contract.
4. 4
   If the guarantee covers only certain obligations, say so expressly.
5. 5
   If there is a policy, attach its conditions to the contract.
6. 6
   Describe the condition of the home at the start, with photographs.
7. 7
   Agree in writing how the home will be handed back at the end.

When the lease ends, the guarantee follows the same rule as during the contract: it answers for whatever remains outstanding in rent and other obligations, unless expressly agreed otherwise. In practice, the prudent step is to inspect the home together with the landlord, sign a handover record and present up-to-date utility receipts. The guarantor, for their part, does well to ask for a written statement that no balance remains. On the return of the deposit, the deposit guide cited earlier explains the tenant's rights.

What we would do

• Before looking for a home, we would decide which guarantee we can offer and whom we can count on as guarantor.
• We would ask for any limit on what the guarantee covers in writing, because without an express agreement it answers for everything.
• In social-interest housing, we would confirm that the guarantee and the advance do not exceed one month's rent.
• If lease guarantees become a burden, we would also compare homes for sale in Costa Rica before deciding.
• For that comparison, we would check home prices in Costa Rica by area.

Frequently asked questions

What happens to the guarantee when the lease ends?

It keeps answering for whatever remains outstanding in rent and other obligations under the law or the contract, unless something else was expressly agreed. As a practice, we recommend inspecting the home with the landlord, signing a handover record and having utility receipts up to date. If there is a guarantor, they should ask for a written statement that no balance remains. For matters concerning the return of the deposit, consult the deposit guide in this same series or a lawyer.

Does the guarantor answer only for the rent?

Not necessarily. Like any lease guarantee, it answers for the rent and for every other obligation arising from the law or the contract. It is limited to the rent, or to other specific items, only if the contract expressly says so. That is why the prospective guarantor should read the whole contract and, if in any doubt about what they take on, consult a lawyer before signing.

Is a clause asking for more guarantee than allowed in social housing valid?

No. In social-interest housing, whose value does not exceed the ceiling set by BANHVI, the tenant cannot be required to give a guarantee larger than one month's rent nor more than one month in advance, and any contrary agreement is void. The rights the law gives tenants cannot be waived, so having signed it does not change that outcome. If you are unsure whether the home falls into that category, confirm the ceiling with BANHVI or with a lawyer.

This guide summarises rental practice for housing in Costa Rica and the legal rules it cites, in force in 2026. It does not replace the advice of a lawyer or a notary, whom it is wise to consult before signing a contract or a guarantee you have doubts about.